Japan PM orders new stimulus package
Saturday, 14 March 2009
TOKYO, Mar 13 (AFP): Japan's Prime Minister Taro Aso Friday ordered top ruling-party officials to put together an additional economic stimulus package to battle the country's deepening recession.
Aso asked for a draft of an extra budget that will include stimulus measures spread out over several years, and said he would seek expert advice on how to best tackle the problems in Asia's biggest economy.
"We should not just do it as a political party alone. Rather we should seek counsel from various people, like scholars," he said.
The package is expected to be worth at least 20 trillion yen (US$ 204 billion), the Yomiuri Shimbun daily and other media said, quoting unnamed sources within the ruling party.
Previous packages have been a mixture of spending and measures such as loan guarantees to help struggling companies.
Japan's economy logged its worst performance in almost 35 years in the last quarter of 2008, contracting at an annualised pace of 12.1 per cent, according to the latest government estimate released Thursday.
The economy is facing a steep drop-off in exports because of the global downturn.
Aso previously announced in December a stimulus package worth 23 trillion yen, in addition to a 26.9 trillion yen boost unveiled in October.
The latest package is likely to include fast-tracking express railway construction, earthquake-proofing for school buildings, environmental measures and social welfare programmes such as child and elderly care, reports said.
Aso asked for a draft of an extra budget that will include stimulus measures spread out over several years, and said he would seek expert advice on how to best tackle the problems in Asia's biggest economy.
"We should not just do it as a political party alone. Rather we should seek counsel from various people, like scholars," he said.
The package is expected to be worth at least 20 trillion yen (US$ 204 billion), the Yomiuri Shimbun daily and other media said, quoting unnamed sources within the ruling party.
Previous packages have been a mixture of spending and measures such as loan guarantees to help struggling companies.
Japan's economy logged its worst performance in almost 35 years in the last quarter of 2008, contracting at an annualised pace of 12.1 per cent, according to the latest government estimate released Thursday.
The economy is facing a steep drop-off in exports because of the global downturn.
Aso previously announced in December a stimulus package worth 23 trillion yen, in addition to a 26.9 trillion yen boost unveiled in October.
The latest package is likely to include fast-tracking express railway construction, earthquake-proofing for school buildings, environmental measures and social welfare programmes such as child and elderly care, reports said.